Can I retire at age 40 with 325,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $325,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%19.2%
1 years$26,838$26,599$26,366$26,138$25,916$24,957
2 years$13,286$13,039$12,799$12,566$12,341$11,385
3 years$8,770$8,521$8,282$8,051$7,830$6,908
4 years$6,512$6,264$6,027$5,801$5,584$4,703
5 years$5,157$4,911$4,677$4,455$4,245$3,407
6 years$4,255$4,010$3,780$3,563$3,359$2,564
7 years$3,610$3,368$3,141$2,929$2,732$1,981
8 years$3,127$2,887$2,664$2,457$2,266$1,558
9 years$2,751$2,513$2,294$2,093$1,908$1,242
10 years$2,451$2,215$2,000$1,804$1,626$1,000
11 years$2,206$1,972$1,761$1,570$1,399$812
12 years$2,001$1,770$1,563$1,377$1,212$663
13 years$1,828$1,600$1,396$1,216$1,057$544
14 years$1,680$1,454$1,255$1,079$926$448
15 years$1,552$1,328$1,133$963$816$370
16 years$1,440$1,219$1,027$862$721$307
17 years$1,341$1,122$935$774$639$255
18 years$1,253$1,037$853$698$568$212
19 years$1,175$961$781$631$507$177
20 years$1,105$893$717$571$452$147
21 years$1,041$832$659$518$405$123
22 years$983$777$608$471$363$103
23 years$930$726$561$429$326$86
24 years$882$681$519$391$293$72
25 years$838$639$481$358$264$60
26 years$797$600$446$327$237$50
27 years$759$565$414$299$214$42
28 years$724$532$385$274$193$35
29 years$692$502$358$251$174$30
30 years$662$474$333$231$158$25
31 years$633$448$311$212$142$21
32 years$607$424$290$195$129$17
33 years$582$402$271$179$117$15
34 years$559$381$253$165$106$12
35 years$537$361$237$152$96$10
36 years$516$343$221$140$87$9
37 years$497$326$207$129$79$7
38 years$478$309$194$119$71$6
39 years$461$294$182$109$65$5
40 years$444$280$170$101$59$4
41 years$429$266$160$93$53$4
42 years$414$254$150$86$48$3
43 years$400$242$141$79$44$3
44 years$386$230$132$73$40$2
45 years$373$220$124$68$36$2
46 years$361$210$116$62$33$1
47 years$349$200$109$58$30$1
48 years$338$191$103$53$27$1
49 years$328$182$97$49$25$1
50 years$317$174$91$46$22$1

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $325,000, adding $5,945 every year, while hoping to spend $21,552 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 72/21/7 Blend
39$325,000$325,000$325,000$325,000
40$364,282$347,057$342,020$389,705
41$378,508$341,132$330,546$401,358
42$393,462$334,194$317,966$410,847
43$409,197$326,171$304,219$420,634
44$425,768$316,986$289,244$430,742
45$443,236$306,558$272,973$441,196
46$461,669$294,802$255,340$452,026
47$481,138$281,626$236,273$463,264
48$501,722$266,935$215,697$474,947
49$523,510$250,626$193,534$487,115
50$546,593$232,592$169,703$499,813
51$571,076$212,720$144,119$513,093
52$597,072$190,889$116,693$527,010
53$624,703$166,972$87,332$541,628
54$654,104$140,836$55,939$557,018
55$685,423$112,337$22,413$573,258
56$718,822$81,327$0$590,435
57$754,477$47,648$0$609,646
58$792,583$11,131$0$631,853
59$833,352$0$0$655,509
60$877,016$0$0$687,321
61$923,832$0$0$724,198
62$974,081$0$0$763,790
63$1,028,069$0$0$806,340
64$1,086,135$0$0$852,117
65$1,148,650$0$0$901,414
66$1,216,020$0$0$954,554
67$1,288,694$0$0$1,011,893
68$1,367,163$0$0$1,073,819
69$1,451,967$0$0$1,140,761
70$1,543,700$0$0$1,213,190
71$1,643,013$0$0$1,291,622
72$1,750,625$0$0$1,376,628
73$1,867,325$0$0$1,468,831
74$1,993,978$0$0$1,568,921
75$2,131,541$0$0$1,677,653
76$2,281,061$0$0$1,795,860
77$2,443,694$0$0$1,924,458
78$2,620,709$0$0$2,064,453
79$2,813,504$0$0$2,216,954
80$3,023,617$0$0$2,383,182
81$3,252,740$0$0$2,564,477
82$3,502,736$0$0$2,762,318
83$3,775,656$0$0$2,978,331
84$4,073,756$0$0$3,214,307
85$4,399,521$0$0$3,472,216
86$4,755,687$0$0$3,754,228
87$5,145,266$0$0$4,062,733
88$5,571,573$0$0$4,400,361
89$6,038,261$0$0$4,770,008
90$6,549,349$0$0$5,174,865
91$7,109,268$0$0$5,618,445
92$7,722,892$0$0$6,104,616
93$8,395,593$0$0$6,637,638
94$9,133,286$0$0$7,222,204
95$9,942,486$0$0$7,863,484
96$10,830,369$0$0$8,567,169
97$11,804,838$0$0$9,339,531
98$12,874,602$0$0$10,187,477
99$14,049,251$0$0$11,118,616
100$15,339,348$0$0$12,141,330